Bitcoin continues to flounder – down 65% since December
At the time of writing Bitcoin (BTCUSD) is $6574, a mere 34% of its value at its highest point of $19,300 on December 17th. Anyone who bought in the run-up to Xmas has now lost 2/3 of their investment. The meteoric rise of Bitcoin at that time was fuelled by ambitious forecasts and Fear of Missing Out (FOMO). The value became self-perpetuating in the scramble for value. That value is looking pretty sick right now, but the consensus view among hard-line BTC evangelists is that it will recover in due course. They are probably right – but the timescale is very much open to challenge. People who bought Gold at $600/oz in the mid eighties believed it would recover, but still had to wait 20 years for that to occur – and gold is a physical asset with intrinsic value. The only way BTC can capture value is in the perception of its value to a potential buyer. There should be some of those about at these levels but it’s not a choice for the faint of heart. People who jumped on the Bitcoin Train in December are going to have some sleepless nights ahead.